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This story first appeared on moneysense.ca as a part of their “How not to raise money monsters” package.
Money is the greatest teaching tool of all time. And when you throw kids and parents into the mix, it has the power to change lives. Years back, I watched as my own preschool-aged children, Luca and Laura, figured out that if you?ve got cash, you can get stuff. The summery jingle of the ice-cream truck was enough for them to drop any toy they had in the sandbox and bolt into the house demanding a couple of loonies for ice-cream?QUICK!?before the truck left. As my pockets were picked dry daily, I realized it was time to start teaching them the value of money.
Money experts will tell you I probably started too late. ?Kids should be given a bit of spending money as soon as they are old enough not to eat it,? says Certified Financial Planner Trevor Van Nest. ?Learning about money will be a lifelong process for them.? In fact, Van Nest and other financial experts generally agree that kids as young as two often understand more about money than parents give them credit for. ?Just by watching you buy things at the store, they quickly figure out who has the power,? says Minnesota-based financial educator Ruth Hayden. ?Your role is to help them understand that money isn?t just for spending?it?s for saving and giving as well.? To get kids comfortable with handling money, one of the easiest things you can do is encourage them to sort coins. Help them separa...